If you have many loans to manage, finding the best debt consolidation loans in the USA can help. In today’s economy, everyone needs financial aid to get by. The problem arises when managing several repayments with different due dates.
As the cost of living grows, it’s challenging to pay on time. Defaulting comes with a price, especially if it’s a mortgage.
It’s not all doom and gloom, though. You can say goodbye to that stress by merging your debts into one loan. Managing one repayment and due date simplifies your life. You may also save money, which you can use for your family.
The solution? A UnitedFN debt consolidation loan. We’ve helped people consolidate over $250 million of debt.
Discover what the loan is and how it can bring you financial freedom. Learn why we have the best debt consolidation loans in the USA and how to apply.
What are debt consolidation loans?
“You must gain control over your money, or the lack of it will forever control you.” ― Dave Ramsey.
You may borrow more money during tough times, but be aware of its pitfalls. Repayments can take a toll on your finances if the situation doesn’t improve.
Don’t ignore the problem if you can’t meet the monthly minimum payments. You’ll incur late fees, and your interest rate may increase.
The issue can get more complicated if you wait. The consequences are severe. You could lose your assets if it’s a secured loan. You might have to sell your house if you default on a mortgage.
You won’t lose your possessions if you don’t make payments towards unsecured loans. You may have pesky debt collectors going after you. There’s also the risk of the lender suing you and garnishing your wages.
Your FICO credit score will drop, making it difficult to get a future loan.
Nip the problem in the bud with a debt consolidation loan. As the name suggests, it’s a facility that merges all your borrowings into one. You have one interest rate and one monthly payment. There’s no more juggling of payments and remembering many due dates.
Debt consolidation is helpful if you have a high-interest debt like credit cards. Personal loans generally have simple interest, unlike credit cards with compounding charges.
Your interest accrues slower on the loan, so you save. The repayment term is also longer, meaning you reduce your monthly payments. Getting such a loan frees up money you can put to good use.
You have a better chance of getting a loan with low interest rates if your FICO credit score is good. You don’t have to aim for a perfect 850. A credit expert says a 760 score will get you the best mortgage rate. John Ulzheimer says that the grade is safe for all loans and cards.
We offer several loans to help you achieve financial independence. Understand how each type works to identify the one that suits your needs.
Types of debt consolidation loans
There are two types of borrowings: secured and unsecured. Auto loans and mortgages are the former. You have to provide collateral to protect the lender.
Qualifying for these loans may be easier as the risk to the creditor is minimal. You stand to lose more if you default on payments. The lender can repossess your car and foreclose your home to recover the balance.
The following are unsecured debts:
- Student Loans
- Medical Bills
- Payday Loans
- Credit Cards
Creditors can’t take over your assets if you don’t pay what you owe. This doesn’t mean you get off scot-free. They may send debt collectors to recover their money or sue you. The latter action may have the court garnish your wages.
Be aware that non-repayment of the loan can cost you a drop in your credit score.
How to choose a debt consolidation loan
Be sure to consider the following are factors when choosing a loan to consolidate your debts:
- Loan Tenure: The repayment period impacts your monthly payments and total interest.
- Interest Rate: Loans have fixed and variable rates. Note that the latter can fluctuate and affect your monthly payments.
- Fees: These charges include origination, processing, and late payment fees. There may be penalties if you settle the loan early.
- Monthly Payments: Ensure the amount is within your budget, or you’ll be back in the same situation as before..
- Security: You may have to provide collateral for some loans. If you apply for this funding, be aware of the risk of losing your asset if you default.
You may borrow from traditional banks, credit unions, and online lenders. Peer-to-peer lending platforms is another option. Some of you may be able to get funds from family or friends.
These sources of funds to merge your debts have many advantages. They may not have the experience we do, as we specialize in debt consolidation loans.
How to qualify for a debt consolidation loan
When you apply for a loan to consolidate your borrowings, you need to meet the following criteria:
Age
You must be 18 years old to apply for a debt consolidation loan.
Credit score
Generally, a high score boosts your approval chances. Knowing your credit rating helps you assess whether you can qualify for a loan at a competitive interest rate. Get a free copy of your report here.
Contact the individual credit reporting bureaus (Experian, Equifax, TransUnion) to report errors. Removing them can boost your score and give you a clean report.
Income
Proof of income is necessary to confirm it’s consistent and sufficient to repay the loan. Get your pay stubs and tax returns ready.
Debt-to-income ratio (DTI)
The debt-to-income ratio is the percentage of your monthly gross income that you use to pay your debts. A high DTI means you’re overstretching your budget and might be unable to repay the debt. You’re less likely to qualify for a loan.
Credit history
Besides your credit score, your payment record shows if you’re a responsible borrower. Your chances of qualifying for a loan may be lower if you have a history of missing or late payments.
Equity
Depending on the amount you borrow, you may need to provide collateral. Mortgages require your home as security for the loan.
Find out if you qualify for our loan by taking a few seconds to complete a simple online form. You’ll get a free, no obligation quote. Rest assured, your information is 100% confidential.
If you’re planning to take a loan, improve your approval chances by doing the following:
- Get a second job or work an additional shift to earn more money. The extra income also lowers your DTI ratio.
- Ensure you pay on time and don’t miss payments. Doing so keeps your credit score high.
The application process
Follow these steps when applying for a debt consolidation loan:
Decide on the loan amount
Compute your current debts and the monthly payments. Then, you can decide how much you need to merge your debts and if the new repayment is more favorable.
Prepare the relevant documentation
We require proof of income, identity, and address. Prepare the following documents:
- W-2s, 1099s, pay stubs, or tax returns.
- Birth certificate, social security card, driver’s license, or passport.
- Utility bills, rental agreements, financial statements, or voter registration cards.
Submit your application
Submit your application when you have the necessary documents.
Sign the contract
You can get pre-approved online in seconds. Preparing the final documents may take time. Review the loan documents and clarify everything before signing the agreement. We will disburse the proceeds after processing your file.
Post-consolidation debt management
Poor debt management is one of the reasons people get into a financial bind. A new loan will only help if you manage it well. We recommend the following tips to prevent your situation from repeating:
Prepare a budget and financial plan
A budget is an excellent tool to help you plan and achieve financial independence with your new loan. Use it to help you organize your spending to meet your repayment obligations in full and on time.
List your gross income and deduct essential expenses, including your loan payment. A positive balance represents money you can save or spend. Unexpected costs may arise, so build reserves to meet them.
Your budget is a vital road map to be debt-free, but only if you stick to it.
Don’t accumulate new debt
It may be difficult, but you can only achieve financial freedom with your new loan if you don’t add new debt.
Many people get into financially tight situations because of their spending habits. Review your past expenses to identify non-essential items that contributed to higher borrowings.
Understand if and how your spending habits caused your debt issue. Changing them can prevent your situation from repeating.
Build an emergency fund
Having a “rainy day” fund is essential to financial security. Don’t let an unexpected event disrupt your debt-free plan. Set aside part of your budget surplus into an emergency fund and prioritize it.
Seek professional financial advice
Consult a debt management professional if you need help to achieve your goals. They’ll design an action plan for you to follow. They have the knowledge and experience to identify and predict potential setbacks.
What our satisfied customers say
Don’t take our word that we offer the best debt consolidation loans in the USA. Here’s what people who were in your situation say:
“I never thought I would get out of this hole. They gained my trust from day 1.”
Andrew J. – Tempe, AZ
“This gave me so much breathing room for actually living. Credit cards and student loans can weigh you down very fast.”
Melissa A. – Brentwood, CA.
“I was struggling as a single mother with these high interest credit card balances. This save us.”
Joanne H. – Dallas, TX
Your road to financial independence
If you’re stressed from managing many borrowings, act before it gets out of hand. Combining them into one loan helps you regain control of your finances. You may save on interest and reduce your monthly payments.
We have the tools that meet the selection criteria to solve your problem. Our experience in helping people ease their financial burden speaks for itself.
Get pre-approved in seconds when you complete our simple online form. We don’t charge upfront costs, and there are no hidden fees.
Ensure that you manage the new loan. Beware not to misuse your monthly savings. Avoid incurring more interest and accumulating extra debt. Identify if your spending habits are part of your debt issue and change them. Otherwise, you risk the problem repeating.
Contact our advisors and be on your way to regaining financial freedom.
